Plug Power Inc. (NASDAQ:PLUG): Gains 9% Despite Falling Estimates


Dallas, Texas 05/29/2014 (FINANCIALSTRENDS) – Plug Power Inc. (NASDAQ:PLUG) is an alternative energy company engaged in the design, development, manufacturing and commercialization of fuel cell systems, mainly PEM (proton exchange membrane) fuel cell, for industrial off-road markets. Recently in April 2014, the company acquired ReliOn Inc. Yesterday, Plug Power stock gained 9% and closed at $4.36 which is 51% above its 200 day simple moving average, yet approximately 24% below its 50 day simple moving average. The stock has traded between 52 week range of $0.26 and $11.72 over the past twelve months and has delivered more than 150% returns year to date.

Falling Estimates

Equity analysts at Zacks mentioned that Plug Power Inc. (NASDAQ:PLUG) has witnessed negative earnings estimate revisions for the current quarter as well as for the full fiscal year. The analysts currently maintain a “sell” rating for the stock owing to certain weakness outweighing its potential strength. Consensus earnings estimate for the current year have been anticipated at a loss of $0.09 per share and the stock has witnessed one downward revision in the past 30 days. Even for current quarter earnings the stock has witnessed one downward revision resulting in a consensus earnings estimate of a loss of $0.04 per share, down from previous consensus estimate of a loss of $0.03 per share.

TheStreet Rating

Equities research analysts at TheStreet also maintain a “sell” rating on the stock of Plug Power Inc. (NASDAQ:PLUG) with a ratings score of “D.” The analysts maintain that the current stock rating is driven by certain negative factors which outweigh the potential strengths of the company and could make it difficult for shareholders to gain from positive results. The analysts regarded weak operating cash flow and deteriorating net income of Plug Power Inc. as key concerns driving the currently assigned “sell” rating for the stock.